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New Haven MOB Changes Hands

NEW HAVEN, CT—The 286,713-square-foot building was sold for a drastically high return.

By Rayna Katz | raynakatz | | Updated on February 03, 2016
Healthcare Trust of America has purchased One Long Wharf Drive. Healthcare Trust of America has purchased One Long Wharf Drive.
NEW HAVEN, CT— Healthcare Trust of America has purchased One Long Wharf Drive, a 286,713-square-foot, seven-story medical office building here from Newmark Holdings for $73 million. David Noonan of NGKF Capital Markets and Richard Lee of OR&L Commercial represented the seller in this transaction. The law firm of Goldberg Weprin Finkel Goldstein also represented the seller. The asset was acquired by Newmark Holdings in 2007 and the final closed sale represents a pre-tax return of 332%, or 37% per year, to investors in the property over the nine year period since it was first purchased. Newmark also added several capital improvements to the property during its time as owners. One Long Wharf Drive is 99% leased to a diverse roster of healthcare industry credit tenants such as Yale-New Haven Hospital and APT Foundation , many of which have remaining long-term leases. As part of the transaction, the buyer will also take ownership of a three-acre ground leased lot, located under a hotel at adjacent Three Long Wharf Drive.

“We’re extremely pleased to announce this sale as the conclusion to an exceptionally successful medical office investment,” says Newmark principal Brian Steinwurtzel. “With its strong cash flow and competitive advantages over other properties in the region, One Long Wharf Drive fit our investment criteria when we first purchased it. Healthcare Trust of America has the expertise to make this a seamless transition for tenants as well as take the property to the next level.”

Notes principal Eric Gural , “We felt the time was right to explore potential sale opportunities for the property and not surprisingly, demand was strong when we put it on the market. In the end, we were able to secure a deal that was favorable for both Newmark Holdings and Healthcare Trust of America.” One Long Wharf Drive  sits south of downtown New Haven and adjacent to Interstate 95, the main highway on the East Coast. The property is served by a nearby transportation network and is a few miles from Yale University and the University of New Haven .  

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